Robert Bosch GmbH has agreed to acquire 100 percent ownership in Bosch's home appliance business, formerly part of a joint venture with Siemens.
Since 1967, home appliances bearing the familiar Bosch logo have been made by BSH—Bosch und Siemens Hausgeräte—a joint venture between industrial conglomerates Bosch and Siemens, which each split a 50 percent stake in the appliance company.
Worldwide, BSH manufactures home appliances bearing the Bosch and Siemens names, and also owns brands including Thermador, Gaggenau, and Neff.
Yesterday, BSH announced that Siemens is selling its half of that joint venture to Bosch for $3.85 million. It is expected that BSH will become a wholly owned subsidiary of Bosch by early next year, pending regulatory approval. BSH will still be able to use the Siemens brand on home appliances.
The deal was not unexpected, nor was it made out of desperation. BSH is Europe's largest producer of home appliances, with revenues of $13.5 billion in 2013, but Siemens wanted to double down on transportation, industrial machinery, healthcare, and heavy industry—including yesterday's $7.6 billion purchase of Dresser-Rand, a manufacturer of oilfield equipment.
"The sale of our BSH stake is part of our drive to continue focusing very intensively on our core business," said Siemens CFO Ralf P. Thomas. GE, one of Siemens main competitors across multiple sectors, spun off its home appliance business to Electrolux for similar reasons earlier this month.
According to BSH CEO Dr. Karsten Ottenberg, Bosch's ownership is expected to benefit the company.
"With Bosch’s acquisition of all the shares of BSH, we’ll have a strong owner in the future–an owner with a long-term orientation and one who will support us in our further strategic development," he said.